Saudi, Egyptian conglomerate to explore for oil in Gulf of Suez

Ahram Online , MENA , Tuesday 26 Mar 2024

Egypt's Minister of Petroleum Tarek El-Molla witnessed on Tuesday the signing of two agreements for oil exploration and production in the Gulf of Suez.

Zohr Gas Field
Zohr Gas Field


The deals were signed by the directors and chairmen of the consortium of ADES Holding Co. (Saudi), Gharib Integrated Oil Services Co. (Egypt), SUCO Oil Company (Egypt), and OSOCO Oil Company (Egypt).

The agreements resulted from the first international bid launched by the Egyptian General Petroleum Corporation in September 2023 in the Gulf of Suez. 

The bid encompasses 23 new areas, including ten in the Western Desert, two in the Eastern Desert, seven in the Suez Gulf area, and four in the Red Sea.

According to El-Molla, the deals aim to optimize the use of oil fields, increase production rates, improve economic performance and cut the costs of imports.

In 2024, Egypt is set to initiate new international bids for the exploration of oil, natural gas, and gold.

Furthermore, the state is actively pursuing measures to bolster its petroleum resources, explore untapped potentials, and enhance energy production.

According to El-Molla, Egypt's state-owned oil companies are poised to invest over EGP 23 billion in the upcoming fiscal year (FY) 2024/2025, commencing in July.

Egypt raised its projected total investments in oil and natural gas to EGP 277 billion during the current FY 2023/2024, ending in June.

Over the past five years, Egypt's petroleum sector, in collaboration with international companies, has drilled 576 new exploratory natural gas wells and made 289 discoveries in gas and petroleum reserves.

By 2025, Egypt aims to dig 35 new exploratory natural gas wells in the Mediterranean and the Nile Delta at a cost of $1.8 billion.

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